Crude Oil Near 3-Week High On Lower Inventory Supplies

West Texas Intermediate traded near the highest price in three weeks after an industry report showed distillate fuel stockpiles declined in the U.S., the world’s biggest oil consumer.

Futures were little changed in New York after advancing 1.9 percent yesterday, the most since Dec. 3. Distillate supplies, a category that includes heating oil and diesel, shrank by 2.29 million barrels last week, said the industry-funded American Petroleum Institute. A government report today may show they slid by 500,000 barrels, according to a Bloomberg News survey. Crude inventories rose by 4.86 million, the API said.

WTI for March delivery was at $96.63 a barrel, down 10 cents, in electronic trading on the New York Mercantile Exchange at 10:53 a.m. Sydney time. The contract climbed $1.76 to $96.73 yesterday, the highest close since Dec. 31. The volume of all futures traded was about 82 percent below the 100-day average.

Brent for March settlement increased $1.54, or 1.4 percent, to $108.27 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude ended the session at a premium of $11.54 to WTI.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu